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Power of Attorney (POA) v/s Letter of Authority (LOA)

  • A LOA is normally used for some of the routine matters, without any statutory requirements. But POA is used where one’s powers can be transferred.
  • In case of LOA the person who authorizes another to act on his behalf should Clearly mention what is to be done by the holder and how he has to perform the task given whereas in case of POA which is more authenticated document which allows the holder more & higher independence.
  •  It is always safe to issue a limited or specific POA as against general POA, as there are risk of misusing the same by the holder. Giving a general POA is like giving blanket authority.
  • One must always be careful while issuing POA and choose the person whom he knows very well & has trust & faith in him.
  • Normally POA is legally valid even if it is not Registered. To be on the safer side it is better to notodse as the signatures become authenticated.
  • If the person deals with buying or selling of the property, then POA has to be registered with the
  • Sub-Registrar. In such property dealings an irrevocable POA from the seller to the buyer is required. It is also required by the buyer to get the municipal records or for change of name of the meters of electric dept. etc.
  • In case of revocable POA, the donor should specify the reason for handing over the POA by the holder and how long the POA will be in effect.
  • Irrevocable POA can be revoked or cancelled. Once it is revoked the donor should inform those agencies where the POA might have been used by the holder.
  • In case of death of person his POA will cease to exist.
  • Every care is to be taken before issuing a LOA or POA. Especially POA, holds the donor responsible for whatever the holder does. It is always in the best interest, the donor should Clearly explain the POA holder regarding the matters on which he can represent the donor.



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